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Table 5: Futures Outlook for Newcastle Benchmark Coal 2016-202221 <br />$60 <br />w <br />$20 <br />$0 <br />KCO <br />' <br />..`b <br />ryo <br />.`0 <br />ryo <br />ryo <br />ryo <br />ryo <br />ryo <br />ryo <br />ryo <br />ryo <br />,tio <br />Sale of Distressed Assets Has Short Term <br />Benefits But Is Counterproductive <br />In order to avoid bankruptcy, Peabody <br />Energy has adopted an aggressive debt <br />management program based on raising <br />cash through distressed sales of assets in <br />order to pay interest on the existing debt. <br />Since 2015 Peabody has announced three <br />separate transactions to divest itself of non- <br />core assets and raise cash27: the sales of <br />the Wilkie Creek mine in Australia, three <br />mines in its U.S. west and southwest reserve <br />portfolio, and its interest in the Prairie State <br />coal plant in Illinois. <br />Table 6: Peabody Energy's Estimated Cash <br />Benefits from Recently Announced Asset Sales <br />Transaction Amount US$m <br />Wilkie Creek 20 <br />Mines in NM and CO $358 <br />Prairie State 57 <br />26 http:/twww.barchart.cam/commodityttures/ICE NewCastle Coal_Futures/LQ <br />27 The company has also identified a number of other asset sales in its Form 10Q -3Q-2015, p 65. <br />Peabody's Strategies for Survival Ignore Market Realities and Risk Backfiring <br />